Forums » Seeking Financing, Money, or Loans » Need downpayment on a great performing apt bld in Michigan

Need downpayment on a great performing apt bld in Michigan 5 posts by 3 users

TroyStange

Real Estate Investor Portland, Oregon Member since Sep '08

54 Posts

29 Influence

1 award

Posted: 04/16/2009 at 02:01PM

Hi
I'm in need of $150K for a downpayment on a very well-performing $650K 62 unit multifamily building in Michigan. It was taken over by the bank and they've done a lot of improvements since.

They're asking $650K and it cash flows $101K/year. They're asking for $125K down, but I wanted $25K in reserves.

I've found a private lender that wants $10K in fees and $800 non refundable fees whether they lend to you or not and I don't like the sounds of that. Can anyone here do any better? I'd rather work with people in this group if possible.

Thanks in advance,
Troy

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Robert G.

Real Estate Investor Rochester, New York Member since Feb '09

4 Posts

25 Influence

Posted: 04/17/2009 at 08:31PM

Troy,

DON'T EVER PAY LARGE UPFRONT FEES TO A LENDER!!

If you need $150k for a $650k purchase, then it looks like you are putting almost nothing down and looking for ~ 80% ltv loan. We can easlly provide you with an 80%+ LTV ( actually over 90%) but we need to discuss what you are bringing to the table. No "skin in the game"? Do you have any experience and how's the credit? We can assist with a JV partner, which it looks as if you will need. PM me for more info..